Franchisees shuttered 2.7% of Subway’s U.S. sandwich restaurants last year, reducing royalties and fees.
According to its newest disclosure statement to franchisees interested in buying sites, the company closed another 571 stores in 2022 after significantly steeper closings in the U.S., its largest worldwide market.
Over-expansion, antiquated operations and design, closed menus, and $5 footlong promotions that cut franchisee revenues have caused Subway to shutter hundreds of U.S. shops.
John Chidsey’s 2021 turnaround plan featured a new cuisine and a celebrity-studded ad campaign. However, restaurant expert John Gordon said such ideas could take years.
Robert Edwards, the franchisee advisor, said repeated closings impacted public opinion.
“That’s baggage they’ll be hard pressed to step away from,” Edwards added.
“We have spent the past two years optimizing our footprint by using a strategic, data-driven approach to ensure restaurants are in the right location, image and format,” Subway stated. “This includes opening new locations with quality as a priority, relocating restaurants to maximize guest traffic, and closing locations when needed.”
According to the April 25 document, closings slowed last year. Subway franchisees shuttered over 1,000 U.S. sites in 2021 and 1,609 in 2020.
Subway will have 20,576 US locations in 2022. It had 26,772 in 2016. 37,000 places worldwide.
“The slowdown in closures is a result of the progress we have made to get back to smart growth, which will boost franchisee profitability and protect our position in the market,” Subway stated.
“In 2023, we aim to increase North American new openings by 35 percent compared to 2022.”
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